Austin, January 1, 2026

In 2025, Texas has seen significant economic growth, with a real GDP expansion of 6.8%, exceeding the national average. The state added 168,000 jobs, and local businesses are thriving due to a favorable business climate. Texas is also investing heavily in renewable energy and has plans for a new financial hub, solidifying its status as a leading economic powerhouse in the U.S.

Texas Economy Achieves Remarkable Growth in 2025

Austin, Texas – In 2025, Texas experienced significant economic growth, solidifying its position as a leading economic powerhouse in the United States.

The state’s real gross domestic product (GDP) expanded at an annual rate of 6.8% in the second quarter, surpassing the national average of 3.8%. This remarkable achievement highlights the resilience and entrepreneurial spirit of Texas business owners and startups, thriving in a climate that favors innovation and economic expansion.

As Texas continues to foster a business-friendly environment with reduced regulations, the upward trajectory of its economy is not only welcome news for entrepreneurs but also a promising sign for communities across the state. Local businesses are bouncing back with renewed vigor, and their commitment to growth is a testament to the power of determination in the face of challenges.

Key Economic Indicators

• GDP Growth: Texas’ economy grew at a faster rate than the U.S. in 2024.
• Employment: The state added 168,000 jobs from September 2024 to September 2025, leading all states and outpacing the national annual job growth rate by 0.4%.
• Unemployment Rate: The unemployment rate stood at 4.1% as of September 2025.
• Labor Force: Texas reached a new high with the largest labor force ever in the state’s history at 15,879,000 as of September 2025.
• Exports: In September 2025, Texas exports totaled more than $36 billion, up 0.2% from the same period last year.

Business Climate and Investments

• Fortune 500 Companies: Texas is home to 54 Fortune 500 headquarters, accounting for 1 in 10 of all publicly traded companies in the U.S.
• Small Businesses: The state boasts more than 3.5 million startups and small businesses, employing about 44% of the workforce, approximately 5.1 million people.
• Foreign Direct Investment: Texas has attracted more than 327 corporate headquarters since 2015 and is the top state for foreign direct investments over the last 20 years.

Renewable Energy Developments

Despite challenges, Texas continues to invest in renewable energy. T1 Energy, a prominent solar manufacturer, commenced construction of a major solar cell fabrication plant in Rockdale, Texas, with an investment ranging from $400 million to $425 million.

Financial Sector Expansion

Texas is positioning itself as a contender to become America’s next financial hub. Plans are underway for the Texas Stock Exchange (TXSE) to launch in 2026, backed by over $160 million from major investment firms.

Conclusion

The year 2025 marked a period of robust economic performance for Texas, characterized by substantial GDP growth, job creation, and a favorable business environment. These developments underscore the state’s resilience and its pivotal role in the national economy. As Texas continues to embrace innovation and reduce regulatory burdens, its future appears bright, encouraging residents to support local businesses and engage in the economic progress.

Frequently Asked Questions (FAQ)

Key Features of Texas’ Economic Performance in 2025

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Author: STAFF HERE AUSTIN WRITER

The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.